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Markets Update: Australia and Japan Retail Sales Top Expectations
Today's important market events:
[EUR] German CPI (MoM - Jun) - 14:00 CEST
[USD] GDP (QoQ - Q1) - 14:30 CEST
[USD] Initial Jobless Claims - 14:30 CEST
[USD] Pending Home Sales (MoM - May) - 16:00 CEST
Global Markets Roundup: 29 June 2023
APAC stocks traded mixed amid some indecision heading into month-end, with gains in Australia and Japan offset by losses in China. Investors weighing the latest economic data and central bank commentary.
US bank shares were marginally supported after-hours following the Fed's stress test results, which showed that all 23 of the largest banks passed.
European equity futures are indicative of a flat open with the Euro Stoxx 50 +0.4% after the cash market closed up 0.9% yesterday. The dollar index (DXY) is back on a 103 handle, while the euro (EUR) slipped below 1.09 and the US dollar (USD) against the Japanese yen (JPY) retained a footing above 144.50.
The ASX 200 was kept afloat by strength in the tech and telecom sectors, as well as better-than-expected Australian retail sales.
The Nikkei 225 extended gains and briefly climbed back above 33,500, supported by the recent advances in USD/JPY and after Japanese retail sales topped forecasts.
The Hang Seng and Shanghai Composite were subdued amid ongoing frictions between the US and China and the potential for additional US tech export restrictions on China.
US equity futures were rangebound with only slight gains seen as bank shares were supported after-hours following the Fed's stress test results which all 23 of the largest banks passed.
European equity futures are indicative of a flat open with the Euro Stoxx 50 +0.4% after the cash market closed up 0.9% yesterday.
The dollar index (DXY) extended its gains and reclaimed the 103.00 level.
The euro (EUR) was softer and breached support at the 1.0900 level to the downside despite the slew of commentary from ECB officials who kept the door wide open for a September hike.
The pound (GBP) remained lacklustre after recently giving up the 1.2700 status and failed to benefit from the comments by BoE Governor Bailey and a forecast from Goldman Sachs for another 50bps rate hike in August.
The US dollar (USD) against the Japanese yen (JPY) retained a firm footing above the 144.00 level after the prior day's ascent to YTD highs.
The Australian dollar (AUD) and New Zealand dollar (NZD) attempted to nurse recent losses with only brief support seen from the PBoC’s firmer-than-expected CNY reference rate setting and after Australian retail sales topped forecasts.
The Swiss franc (CHF) strengthened against the euro and dollar after SNB's Maechler said underlying price dynamics are persistent and inflation pressures are too high to create trust in money, while she added that inflation is becoming more broad-based in Switzerland.
In fixed income, 10-year US Treasury (UST) futures reversed some of the prior day's advances which had been led by the belly amid a strong 7-year auction and month-end anticipation.
German bund futures held on to most of their recent gains after having shrugged off the slew of hawkish central bank commentary from Sintra, while the focus now turns to the incoming inflation data from German states.
10-year Japanese government bond (JGB) futures were kept afloat but with gains only mild despite a firmer 2-year JGB auction.
In commodities, crude oil futures lacked excitement and marginally pulled back after yesterday's inventory-driven surge.
Norway's Industri Energi Labour union has agreed to a wage deal for oil drilling workers and will not go on strike, while agreements were also made with DSO and SAFE labour unions.
Spot gold was stuck near yesterday's lows as the greenback continued to strengthen.
Copper futures were subdued amid ongoing US-China frictions and central bank rate hike expectations.
Looking ahead, key economic data releases include German CPI, Spain CPI, US PCE Prices (Final), IJC & GDP (Final), Riksbank Policy Announcement, remarks from Fed's Powell & Bostic, BoE's Tenreyro & ECB's de Cos.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team
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